Sub Sale Agreement Template for Indonesia

The Sub Sale Agreement is a crucial document in Indonesian property transactions where an intermediate party wishes to transfer their rights in a property to a subsequent buyer. This agreement is commonly used in both residential and commercial property developments, particularly in situations involving off-plan purchases or when the original buyer wishes to sell their rights before the completion of the property. The document must comply with Indonesian property laws, including Law No. 1 of 2011 on Housing and Settlement Areas and relevant local regulations. It includes comprehensive details about the property, payment terms, warranties, and obligations of all parties, while ensuring proper documentation for tax and regulatory purposes. The Sub Sale Agreement is particularly important in protecting the interests of all parties involved and ensuring a smooth transfer of property rights within the Indonesian legal framework.

1. Parties: Identifies and provides full details of all parties involved: the Original Seller, Intermediate Seller (Sub-Seller), and End Buyer

2. Background: Explains the context of the transaction, including the original purchase agreement and the intention to sub-sell

3. Definitions: Defines key terms used throughout the agreement

4. Subject Matter of Sale: Detailed description of the property being sold, including its legal and physical characteristics

5. Purchase Price: States the agreed purchase price and payment terms, including deposit arrangements

6. Payment Terms: Detailed structure of payments, including installments, due dates, and payment methods

7. Conditions Precedent: Lists conditions that must be fulfilled before the agreement becomes effective

8. Completion: Details of the completion process, including timing and requirements

9. Representations and Warranties: Statements of fact and promises made by each party regarding their capacity and the property

10. Rights and Obligations: Specifies the rights and obligations of each party before and after completion

11. Default and Termination: Consequences of breach and circumstances under which the agreement can be terminated

12. Governing Law and Dispute Resolution: Specifies Indonesian law as governing law and outlines dispute resolution procedures

13. Notices: How formal communications between parties should be made and delivered

14. General Provisions: Standard boilerplate clauses including severability, entire agreement, and amendments